“AC Ventures Successfully Closes $210 Million Fund Amid Challenging Funding Landscape in Southeast Asia”
In the midst of a prolonged funding downturn, AC Ventures, a Jakarta-based venture firm, brings a ray of hope for Southeast Asian startups with the announcement of the final close on its fifth fund, ACV Fund V, securing an impressive $210 million. Noteworthy limited partners in this venture include the World Bank’s IFC and investors from the United States, the Middle East, and North Asia. Returning LPs contributed over 50% of the fund, while institutional capital accounts for more than 90% of the total.
AC Ventures has already initiated investments from Fund V, supporting ventures such as Indonesian electric vehicle manufacturer MAKA Motors and sustainable farming startup Koltiva. With a current portfolio of 120 startups and assets under management exceeding $500 million across its five funds, Fund V aims to add approximately 25 more companies. The fund’s investment range spans from $2 million to $5 million, with potential variations based on the unique opportunities presented. Notably, rapidly growing startups aligned with AC Ventures’ impact objectives may receive checks ranging from $20 million to $30 million.
Co-founder and managing partner Adrian Li acknowledges the challenges faced by the venture and technology sectors in 2023 but emphasizes that AC Ventures found unwavering support from new and existing limited partners who share the firm’s optimism about Indonesia and Southeast Asia’s potential.
Li states, “Our limited partners share a firm belief that challenging times often yield the best investment opportunities.” He expresses confidence in Fund V becoming one of the most successful vintages, attributing this optimism to Indonesia’s enduring demographic trends and robust economic fundamentals.
While AC Ventures invests across Southeast Asia, Indonesia remains a focal point due to its significant contribution of 40% to the region’s economy. The country’s economic growth, driven by private consumption, manufacturing, services, and exports, is expected to reach $360 billion by 2030.
Fund V specifically targets sectors such as fintech, e-commerce, health tech, MSME enablement, and climate-related ventures. AC Ventures is particularly excited about startups addressing changing consumer patterns in online retail, consumer services, and consumption upgrades in the era of growing digital adoption.
AC Ventures is committed to fostering environmental and social impacts, with Fund III boasting an impact ratio of +37%, surpassing the Nasdaq Small Cap Index average of +29%. The firm prioritizes gender parity, with 50% of its leadership being women, and 41% of C-level leaders in its portfolio also being women. AC Ventures actively supports the UN’s Women’s Empowerment Principles and IFC’s Invest2Equal program, encouraging its portfolio companies to adopt inclusive hiring practices. The firm believes in showcasing success stories of female-led startups, setting powerful examples for others to follow.
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